12 April 2009

Tesco to offer free delivery?

Waitrose have recently announced plans to scrap it's delivery charge which may trigger a price war between online supermarkets.

Tesco already offers occasional voucher codes for free delivery but will they respond to the move made by Waitrose and make this permanent?

I think probably not, for the time being anyway. Tesco already does some great deals for online shopping, the online coupons offering things like £5.00 off when you spend £50 or 750 free clubcard points when you spend £50 eat into the margins, to remove the delivery fee may stretch the margins too much or cause them to limit the number of online voucher codes they release.

Waitrose online run through Ocado is growing at 60% anually so the pressure is on those other supermarkets who offer online delivery to ensure they remain competitive. Sainsburys, Asda and Tesco are all cheaper than Waitrose but if you include the £10 off vouchers Ocado offers and free delivery some customers may consider switching.